Introduction
Zimbabwe’s tax authority has issued Public Notice 05 of 2026, clarifying the VAT obligations of non-resident digital service providers and how these interact with the newly introduced Digital Services Withholding Tax (DSWT). The update confirms that VAT registration and compliance remain mandatory under specific thresholds, even after the rollout of DSWT.
Timeline
The clarification was published in 19 January 2026, and reflects the current understanding of the tax authority. Further interpretation and guidance may evolve over time.
The fiscalization mandate is already live in Zimbabwe for all VAT registered taxpayers since June 2025.
Impact
The notice reaffirms that non-resident suppliers remain responsible for VAT registration and fiscalization if their annual turnover from services consumed in Zimbabwe exceeds USD 25,000.
Key points include:
- Existing VAT-registered non-resident digital service providers remain registered.
- The introduction of DSWT does not allow deregistration from VAT.
- Where VAT is withheld under DSWT, the amount is credited against the supplier’s VAT liability, but all compliance obligations continue.
- Fiscalization requirements still apply, meaning non-resident suppliers registered for VAT must continue to issue fiscalized invoices for taxable supplies.
What this means for businesses:
Non-resident digital service providers should assess their ongoing fiscalization obligations in Zimbabwe and ensure they remain compliant with both VAT and DSWT requirements.
